The finance ministry proposes to explore the possibility of using other indicators instead of the refinancing rate to calculate the cap for interest on liabilities that are subject to deduction from the corporate profit tax, said the updated edition of the country’s primary objectives of the fiscal policy for 2011—2013 that reached RIA Novosti.

Currently, when calculating a deduction for ruble debt obligations the CBR refinancing rate, increased by 10%, is applied. With the refinancing rate standing at 8.5%, when calculating the corporate profit tax interest on credits of up to 9.35% can be recorded as costs. “The refinancing rate, being an instrument of the monetary policy, does not always reflect the average interest rate that took shape in the economy," the finance ministry specified in the document noting that the average interest rate on ruble obligations could be substantially lower or higher than the refinancing rate.

In 2009 the average lending rate in the Russian economy stood at 14% and authorities expect to bring it back to the pre-crisis 10% only in two or three years.

The finance ministry does not specify which indicators could be applied instead of the refinancing rate. “As regards debt obligations denominated in rubles, the option of choosing such indicator (one or several) is in many ways defined by the degree of money market development," the document said.

Furthermore, the finance ministry pointed out that on liabilities denominated in currencies the average interest rate could vary not only in different periods of time, but could also be determined by the currency of liabilities. Currently the flat rate of 15% is applied when calculating deductions under currency liabilities. “The fixed amount of the cap of interest recorded as costs does not meet the targets set, i.e. to reflect a certain average interest rate on debt obligations of this type," the document said.